Victor VilaplanaVP, Electric & Fuel Procurement

September 18, 2014

IEPA 33rd Annual MeetingEnergy Procurement,

Infrastructure and Policy: Climate Challenges Beyond

2020

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SDG&E Background

Customer Base• 3.4 million • 89% residential • 11% commercial and industrial

Territory Size• 4,100 square-miles• 2 counties• 25 communities

System• 1.4 million electric meters• 860,000 gas meters• 130 substations • Over 1,700 miles of transmission line

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TO TIJUANA(CFE)

ENCINA POWER PLANT

Miguel

Escondido

Talega

MEXICO

Sycamore Canyon

Glencliff

Descanso

BarrettCameron

Boulder Creek

Santa Ysabel

Creelman

Alpine

NarrowsWarners

Borrego

Poway

Pomerado

Esco

Rincon

Lilac

Ash

Valley Center

RIVERSIDE CO.

SAN DIEGO CO.

Capistrano

Trabuco

LagunaNiguel

Margarita

Cristianitos

Main Street

IMPERIAL VALLEY

Pala

Palomar Energy

Calpeak Peaker

El Cajon

Otay Border00

Lake Hodges

WellheadEscondido

MEF

To North Gila Substation

Arizona

ECO

Four 230 kV lines to SCE

Ocotillo

SWPL

SRPL

Penasquitos

Mission

Old Town

San Luis Rey

Monserate

Suncrest Substation

Kumeyaay

Crestwood

Boulevard

Otay Lake

Loveland

Los Coches

Calpeak Peaker

SAN ONOFRENUCLEAR POWER PLANT

ORANGECO.

Major Sources of Local Power

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Preferred Resources Added Since SONGS Retirement* Following the shut down of SONGS in January

2012, SDG&E has added the following preferred resources to its portfolio:• Energy Efficiency: 96 MW • New Roof Top Solar: 155 MW ► Residential: 122 MW► Non-Residential: 33 MW

• Renewable Power: 1,235 MW► In San Diego and delivered over Sunrise

Power Link

*Capacity values are nameplate

Renewable AdditionsIn San DiegoNRG Borrego Solar 26 MWSol Orchard Solar 14Desert Green Solar 6Otay V&VI Bio Gas 3 49 MW

IV Substation Ocotillo Express Wind 265 MWIV Solar 200Camp Verde Solar 139Csolar South Solar 130Centinella Solar 175SG2 IV Solar 150

1,059 MW

Delivered over SunriseArlington Solar 127 MW

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SDG&E RPS Goal Status

*SDG&E is projected to achieve 33% in 2014

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SDG&E’s Customer Profile SDG&E has a very low Industrial load

As a result, SDG&E’s load peaks twice during the day – once in the morning and again later in the afternoon and into the evening

This is the inverse of peak solar generation time periods

*CEC California Energy Demand 2014-2024 Final Forecast, PGE Mid, SCE Mid, and SDG&E Mid (estimated 2014 Manufacturing, Mining, and Agriculture consumption) (http://www.energy.ca.gov/2013_energypolicy/documents/ demand-forecast_CMF/mid_case/) **CAISO (http://www.ferc.gov/CalendarFiles/20140610083142-Bouillon,%20CAISO.pdf)

**

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SDG&E’s Typical Rooftop Solar Customer Profile

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Path Forward

Utilize Peaking Facilities – Recent AchievementsWellhead Escondido Repower Complete (10 MW increase)Pio Pico Contract Approved June 2014

• Will facilitate shutdown of 188 MW of 1960’s era peaker plants

• Currently before State Court of Appeals (may delay contractual on-line date of September 2015)

Carlsbad Energy Center Application Filed July 2014

Integrate Planning – Siloed Mandates are IneffectiveCHP: results in must take generation when flexibility should be the focusRPS: requirements are disconnected from the need for local capacityRAM: intended to jump-start RPS procurement, but continued after IOUs had met/exceeded targetsSB1122: target not related to actual procurement need

Program Technology Target (MW)

Re-MAT Renewable 49

SB 1122 Bioenergy 25

RAM Renewable 155

CHP Combined Heat & Power

211

Storage Storage 165

EE (2014 forecast)

Energy Efficiency

43

DR (2014 forecast)

Demand Response

78

Total ~726